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EUR/JPY drops to 20-DMA and recovers post BOJ

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - A renewed bout of selling interest was seen in the EUR/JPY in the mid-Asian trades, knocking-off the cross to the 20-DMA support after the BOJ decided to leave its monetary policy unchanged, only to recover near 135.20 region.

    EUR/JPY falls further on strengthening yen

    Currently, the EUR/JPY pair trades -0.22% lower at 135.20, clinging to 135 handle. The EUR/JPY cross met fresh supply near hourly 10-SMA located at 135.50 and accelerated to the downside after the yen received fresh boost from the BOJ unchanged monetary policy stance.

    Although the cross found fresh bids at the 20-DMA located just ahead of 135 handle, now attempting a tepid recovery as the BOJ-provoked knee jerk eases-off.
    While, the EUR/USD pair trades almost unchanged on the upper bound of the 1.12 handle, fighting hard to regain 1.13 barrier.

    Looking ahead, EUR/JPY is expected to take cues from the BOJ presser and Kuroda’s words while the focus shifts towards tomorrow macro calendar amid lack of fresh economic news later today.

    EUR/JPY Technical Levels

    To the upside, the next resistance lies at 50-DMA located at 135.85, above which it could extend gains to 136.21 (100-DMA) levels, a break beyond which will open doors for 137 barrier. To the downside immediate support might be located at 135.02 (20-DMA) below that the confluence zone of the hourly 100 & 200-SMA at 134.60, could act as a major support.
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